Is Fossil Group, Inc. overvalued or undervalued?

As of 10 November 2022, the valuation grade for Fossil Group, Inc. has moved from attractive to risky, indicating a significant deterioration in its financial outlook. The company is currently assessed as overvalued given its negative performance indicators, including a Price to Book Value of 0.56 and an EV to EBITDA ratio of 26.43, which suggests that investors are paying a high price relative to earnings before interest, taxes, depreciation, and amortization. Additionally, the company's ROE stands at -17.45%, reflecting poor profitability.
In comparison to its peers, Fossil Group's valuation metrics are concerning. For instance, Hanesbrands, Inc. has a P/E ratio of 8.93, while Movado Group, Inc. boasts a very attractive P/E of 21.12, highlighting Fossil's struggles in maintaining competitiveness within the industry. Furthermore, Fossil's stock has underperformed significantly against the S&P 500, with a year-to-date decline of 22.16% compared to a modest gain of 2.44% for the index. Overall, these factors contribute to the conclusion that Fossil Group, Inc. is overvalued in the current market environment.